Nigerian Cabinet Approves Gas Master Plan

Nigeria's federal government has approved a gas master plan, proposed by minister of state for petroleum resources Ibe Kachikwu.

He confirmed the approval during the 5th triennial national delegates conference of oil workers' union Pengassan (Petroleum and Natural Gas Senior Staff Association of Nigeria) in Abuja on June 28. The decision was reached, he said, after his presentation of the new gas strategy to key cabinet members of President Muhammadu Buhari's administration earlier that day. 

"We need major changes in policy to make gas a hub of our economy," the minister (pictured below) told Pengassan delegates: "Gas development remains the new horizon for opportunities in the sector. There is so much happening that should have happened yesterday. Gas is the future of this country in terms of infrastructure, support, members of staff training and re-training."

According to state-owned Nigerian National Petroleum Corporation (NNPC), of which Kachikwu was group managing director in 2015-16, the gas master plan is a guide for the commercial exploitation and management of Nigeria's gas sector so as to uplift the country's economy.

It has three main objectives: to stimulate the multiplier effect of gas in the domestic economy, to position Nigeria competitively in high-value export markets, and guarantee the long-term energy security of Nigeria.

Some argue the latter two objectives are misaligned and that more urgency should be given to incentivise gas production for Nigerian power generation.

The new gas master plan can be seen as signalling the present government's interest to seeking investor interests in Nigeria's gas economy.

But a gas master plan was advocated even before Buhari took office. An earlier NNPC group managing director Mohammed Sanusi Barkindo advocated one, saying it would provide a pragmatic approach to the development of gas infrastructure by leveraging competent third party investors.

Omono Okonkwo